The US and Chinese markets suddenly sent a heavy signal! Bitcoin miners are close to "shutting down" and surrendering. Analysts: $56,000 is the last line of defense

FX168 Financial News Agency (Asia Pacific) reported that Bitcoin miners in China, the United States and the world are facing difficulties. According to data from The Block, the total income of Bitcoin miners in August fell to $8.5136, a record low this year, a decrease of $99.75 million compared with July, highlighting the surge in pressure on miners. Analysts warned that $56,000 Bitcoin is the last line of defense for miners. On Monday (September 2), the price hit a low of $57,128.

Bitcoin miners' income mainly comes from block subsidies and on-chain transaction fees. Data shows that on-chain fee income in August was $20.76 million, a decrease of $4.14 million from July. In August, Bitcoin miners mined a total of 4,289 blocks, with block heights ranging from 855,014 to 859,303, but the overall weakness of the market, especially the volatility of Bitcoin prices, further affected the profitability of miners.

Among these blocks, the two major mining pools, Foundry USA and Antpool, performed the best.

Foundry USA mined 1,248 blocks, accounting for 29.10%; Ant Pool mined 1,074 blocks, accounting for 25.04%. The two mining pools together accounted for 54.14% of the total revenue in August, mainly due to the launch of on-chain staking by Babylon on August 22.

Julio Moreno, head of research at the well-known on-chain data tracking platform CryptoQuant, recently shared a Bitcoin chart on Twitter (now renamed X), pointing out that the Bitcoin market cycle indicator has entered the bear market phase again, which is crucial for traders and investors because the indicator can reveal the overall trend of the market.

Analysis shows that $56,000 is a key support level. If the price fails to hold this level, it may trigger a deeper correction, further exacerbating investors' concerns about recent market turmoil.

Source: CryptoQuant

With Bitcoin miner earnings hitting new lows in August, the market has become more cautious about the outlook for the coming months. Although the global encryption market continues to develop and technological innovation continues, Bitcoin price fluctuations, reduced online transaction activity, and intensified market competition still bring significant pressure to miners.

If the price of Bitcoin fails to recover in the short term, miners' profits may decline further, posing a greater challenge to small miners. Some small miners may exit the market due to continued low returns, causing large mining pools to further consolidate their market positions.

As transaction volumes fall and cryptocurrency mining difficulty increases, miners are squeezed, leading to lower revenue. After the Bitcoin halving in April, the mining reward was reduced by 50% to 3.125 Bitcoins, and the difficulty increased even more seriously.

According to Bitbo and Blockchain.com data, the average fee as a percentage of block rewards was 2% in August, and the 30-day average of daily confirmed transactions reached a year-to-date peak of nearly 631,648 on July 31, before falling back to 594,871 on August 31.

Mining difficulty also continued to rise, reaching an all-time high of 89.47 trillion in August, up from 86.87 trillion in July. Due to the increase in Bitcoin mining difficulty and the decline in profitability, some miners began to provide computing power to artificial intelligence (AI), and some transactions allowed miners to net billions of dollars.